How Rooftop Solar Installations in India Increase in 2023?

Everyone in India even the whole world is talking about rooftop solar installations that are widely adopted as renewable and cost-effective solutions to traditional power sources. No longer are the days when rooftop solar systems are limited just to residential properties.

The advanced solar panels are designed to be effectively used for different commercial and industrial applications. Moreover, rooftop solar installations can now be seen on the terrace roofs of schools, hospitals, government organizations, and other buildings.

According to several research reports, the installation of rooftop solar panels for home and other buildings has grown by a significant percentage over the past few years. Keep scrolling down to discover the ways rooftop solar installations have been increased in India.

Growth of Rooftop Solar Installations in India

In India, the rooftop solar installations increased by 3.2% to 872 MW (megawatt) from January 2023 to June 2023, according to Mercom India reports. Rooftop solar systems of 845 MW capacities were installed in the first half or first quarter of the year 2022. According to the Rooftop Solar Market Report of this research firm, the cumulative rooftop solar capacity of India was 9.6 GW (gigawatts) by June 2023.

In H2 of 2022, 387 MW of rooftop solar capacity panel installation was done. This was 20% higher than January-March 2023. However, marginally it was down by 0.5% over April-June 2022. This means that rooftop solar installations were not as expected in the first half quarter despite being great reductions in the component prices and rising solar demand.

The great improvements have been seen in the H2 when installers holding out for effective margins begin increasing installations to successfully meet the rising demand at a much faster speed, as reported by Mercom Capital Group’s CEO Raj Prabhu.

After several ups and downs in 2022, steady improvements have been seen in rooftop solar installations in 2023 driven by solid basics. 8877 MW of rooftop solar capacity was included on 31 March 2023 which is more than 30 September 2022.

In Q1 of 2023, 485 MW of rooftop solar capacity was included. This is 0.4% higher than that of 483 MW in the fourth quarter of 2022. The rooftop solar installations were increased by 6.4%, according to YoY (year-over-year) comparison.

Rooftop solar capacity additions reached 54% by residential users, 21% by commercial users, and 25% by industrial users. FMCG (fast-moving consumer goods), pharmaceuticals, auto components, chemicals, and automobiles are among the top sectors for accounting for industrial solar rooftop installations.

Gujarat, Maharashtra, and Rajasthan were the top Indian states for growing rooftop solar installations. Kerala and Karnataka are other states to notice a significant rise in rooftop solar capacity with an increasing number of solar installations.

Gujarat, Karnataka, and Kerala contribute to approximately 70% of the solar capacity additions. Between the first quarter of 2022 to quarter one of 2023, Kerala noticed the highest compounded growth of more than 21%, followed by Andhra Pradesh and Karnataka.  

Karnataka and Kerala are two Indian states that have successfully implemented dedicated residential rooftop solar programs encouraging residential installations. The tender activity increased by 47% during the quarter than the previous quarter. The renewable energy development agency and power Distribution Company of Kerala contributed 15% and 31% respectively of the overall capacity of the tender.

The rooftop solar installations include 26% of overall solar installations in the first quarter of 2023. The solar installations in the present quarter were very similar to those of the last quarter. Most of the installations came from the residential segment. The average cost of the rooftop solar system during the quarter was 6% less than the previous quarter. However, the cost increased marginally on a YoY comparison.

The total cumulative rooftop solar capacity of India will be about 9.3 GW by the end of Q1 of 2023. To achieve the goal of 40 GW rooftop solar installations, there is a need to create awareness about the financial benefits of solar system for residential flats, commercial buildings, homes, and other buildings.  

What is Bringing the Growth in India’s Rooftop Solar Energy Sector?

After many years of struggle, India has experienced historic growth in the rooftop solar power industry. There are several factors behind this enormous growth like –

  1. Government subsidies for residential users
  2. Awareness programs for solar power benefits
  3. Huge demand for cost savings
  4. Tax incentives and other financial benefits
  5. Reducing rooftop solar system costs

According to study reports, the residential solar market in India has been constantly doing perfectly due to these reasons. When you search for how microgrid solar installations are changing the nation, you will come to know that microgrids become the popular choice for people in rural areas to get reliable and sustainable power.

Grid-Connected Rooftop Solar Scheme

MNRE (Ministry of New and Renewable Energy) launched a new grid-connected rooftop solar scheme that aims to bring a cumulative installed solar capacity of 40,000 Megawatt by 31 March 2026. According to this scheme, homeowners will receive this subsidy for producing and using residential electricity under component A while DISCOMs get incentives under component B of this scheme. Subsidies for the residential sector have been updated with 40% CFA for up to 3 Kilowatt capacity and 20% CFA for a capacity of more than 3 kilowatts and up to 10 kilowatts.

Before COVID-19, lack of customer awareness was the main factor that didn’t allow the huge adoption of rooftop solar installations in the nation. The development of awareness programs resulted in a huge rise in consumer behavior and rooftop solar system demands after COVID-19.

Exemption of ALMM Requirement

The government of India announced the exemption of the ALMM requirements for rooftop solar panels till March 2024. This is the main reason that has eased the situation of the module availability and slightly reduced the costs.


The sleepy rooftop solar power industry of India has finally jumped into action with a large number of rooftop solar systems installed in the last nine months. If you are thinking of installing these solar systems on your household rooftop, then reach experts at Megamax Solar to get the most appropriate system based on your budget and power needs.   

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